Running Head: DB FORUM 2 1
Discussion Board Forum 2
BMIS 510 - B01
Liberty University
DB FORUM 2 2
Business process re-engineering refers to the transformational initiatives developed
within an organization to change or redesign most if not all primary business processes (BP),
mainly managerial and is done on a large scale basis [ CITATION Sid10 \l 1033 ]. Business
process re-engineering, also known as process design and reengineering, also focuses on
organizational structures, the organization’s values, and information systems [ CITATION
Sta18 \l 1033 ]. There are six key steps involved in this methodology[ CITATION Moh16 \l 1033
]:
1. Define business objectives and framework
2. Identify the customer and customer needs
3. Analyze and discuss existing business processes
4. Analyze and identify opportunities for improvement
5. Develop a re-design plan for business processes
6. Implement new re-design of business processes
Enterprise resource planning (ERP) and business process re-engineering are closely
linked with each other but focus on different aspects of an organization. The process of business
process re-engineering provides a real life look and understanding of existing processes
throughout the organization, taking the company back to the basics by reexamining their roots
[ CITATION Upa12 \l 1033 ]. This method only focuses on processes, and not on tasks,
capturing the existing state of a process, examining and dividing it into individual
actions[ CITATION Upa12 \l 1033 ]. The belief behind this method is to achieve exceptional and
noteworthy changes and improvements to current and critical performance measurements, such
as costs, performance, quality, and level of service [ CITATION Upa12 \l 1033 ].
DB FORUM 2 3
In contrast, ERP revolves around a system environment, and includes multiple important
business functions such as marketing, accounting and/or finance, human resource management
and planning, as well as multiple management and production areas [ CITATION Upa12 \l
1033 ]. Information related to key performance indicators (KPIs) is provided by ERP systems,
and assists in increasing the efficiency level of decision making processes by management. The
use of ERP assists in reducing production and/or rendering services’ costs, provides support for
inventory management, and as a result improves productivity [ CITATION Upa12 \l 1033 ].
A crucial role of an ERP is to improve the competitive position of an organization by
improving multiple aspects of the company. The use of a business process re-engineering ties
into implementation of an ERP by identifying, improving, and implementing process changes,
assisting management in understanding existing and future processes to assist in providing better
overall management. Through the analysis of the data gathered during the business process re-
engineering, an effective ERP platform is able to be identified and chosen or can be determined
as being unnecessary.
Business process re-engineering may include an ERP to assist in the more detailed
redesign changes, but both methodologies are not required in all business process reviews and
improvements. Business process re-engineering is the more broad analysis and re-design of
workflow both within and between organizations. ERP is a tool to direct efforts, identifying what
can be considered the best practice for business processes and the best options for doing those
processes [ CITATION Upa12 \l 1033 ]. ERP is often considered to be the most important tool
for business process re-engineering [ CITATION Upa12 \l 1033 ]. Extensive thought and
consideration is needed to determine which methods would best suit the needs of the
organization and what they are attempting to achieve.
DB FORUM 2 4
DB FORUM 2 5
References
Mohapatra, S., & Choudhury, A. (2016). Readiness framework for business process Re‐
engineering. Strategic Change, 25(5), 509-524. doi:https://doi-
org.ezproxy.liberty.edu/10.1002/jsc.2077
Sidorova, A., & Isik, O. (2010). Business process research: A cross-disciplinary review. Business
Process Management Journal, 16(4), 566-597. doi:10.1108/14637151011065928
Stair, R. M., & Reynolds, G. W. (2018). Fundamentals of information systems (9th ed.). Boston,
MA: Cengage Learning.
Upadhyay, P., & De, A. (2012). Financial business process re-engineering in ABC ltd*. Asia -
Pacific Finance and Accounting Review, 1(1), 67-87. Retrieved May 20, 2020, from
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1432714572?accountid=12085
Powered by TCPDF (www.tcpdf.org)
